AI for Equity Research Analysts Quiz

Answers and explanations appear as you take the quiz.

1. Which U.S. regulation requires broker-dealer research analysts to certify that published views accurately reflect their personal views?
   • Regulation FD
   • Regulation AC
   • Regulation S-K
   • Regulation Best Interest
2. Why does the guide recommend pulling numbers from XBRL company facts instead of having a model read financial tables?
   • XBRL data includes analyst forecasts
   • XBRL data is updated in real time during calls
   • XBRL values are machine-readable figures the company tagged in its SEC filings
   • XBRL removes the need for any reconciliation checks
3. Which of these is a typical numeric error the guide warns language models make?
   • Refusing to read any numbers
   • Rounding every figure to the nearest billion
   • Only reading the last page of a filing
   • Mixing up thousands and millions, or fiscal and calendar periods
4. An analyst wants to find newly added risks in a company's annual report. Which section should the comparison focus on?
   • The auditor's consent
   • Exhibit 21 list of subsidiaries
   • Item 1A Risk Factors
   • The cover page
5. Which is an example of a deterministic check the guide recommends before extracted figures enter a model?
   • Confirming that segment revenues sum to reported total revenue
   • Asking the model whether it is confident
   • Running the same prompt at higher temperature
   • Checking the stock's price movement that day
6. When an AI tool reports a change in management's guidance language, what should each flagged item include?
   • A buy or sell recommendation
   • The exact quote and its location in the transcript
   • A sentiment score only
   • The model's estimate of next quarter's EPS
7. According to the guide, where does AI create the most value for an equity analyst?
   • Deciding the final rating on each stock
   • Replacing management meetings
   • Freeing time from reading and extraction for judgment and original research
   • Predicting the next day's share price
8. Why should analysts avoid pasting confidential or material nonpublic information into consumer AI tools?
   • Consumer tools cannot read financial text
   • It violates Regulation AC's certification requirement
   • Consumer tools always delete inputs immediately
   • It creates data-handling and MNPI risks outside the firm's controls